Chicago cabs can add up to $3 a ride for gas again. The Council wrote the rule, and rewrote taxi fares this spring

With gas at $5 a gallon, the City switched on a fuel surcharge of $1 to $3. The trigger was set by a 2022 ordinance, and the Council raised meter rates for the first time since 2016 in April.

By Chicago PoliticsUpdated Oct 24, 2026

Chicago taxi drivers can once again add a fuel surcharge to every fare, after the Department of Business Affairs and Consumer Protection authorized it this week, the Chicago Sun-Times reported. The charge is $1 on fares of $20 or less, $2 on fares from $20.01 to $40, and $3 on fares above $40. Drivers must post a notice in the cab.

Why it matters: riders will see a higher total on the meter for as long as gas stays high, and drivers, who pay for their own fuel, get some relief. A surcharge was also in effect from June 1 to June 23 this year, according to the Sun-Times.

How the surcharge works

The surcharge is not a decision BACP makes from scratch. It is written into the City's taxi fare rules, Section 9-112-600 of the Municipal Code. Under the version the Council passed in April, the commissioner may authorize a surcharge only when both AAA's current average and its month-ago average price for regular gas in the Chicago area are at or above $5 a gallon. If the current average then stays below $5 for seven straight days, the commissioner may end it, and drivers must stop. A driver who adds a surcharge when it is not allowed can be fined $100 to $500 for each fare, according to the ordinance text.

The surcharge is figured on the meter fare before tolls and other fees, the Sun-Times reported.

What our records add

The Council has set these rules before. In September 2022, the Council passed an ordinance from Mayor Lori Lightfoot amending the taxi fuel surcharge rules (O2022-2373).

The Council raised taxi fares in April. On April 15, the Council passed Mayor Brandon Johnson's taxi ordinance, which rewrote the fare table, raised fines for unlicensed cabs and restated the fuel surcharge rules (SO2025-0019931). The vote was 49 to 1. Ald. Brendan Reilly (42nd) voted no.

How each ward voted

49 yea, 1 nay · Apr 15, 2026 · Passed

Yea Nay

SO2025-0019931: the roll call, the timeline and the documents

At the April 13 License Committee hearing, the BACP commissioner said taxi fares had not changed since 2016 and proposed an increase of about 20% to the time and distance rates, along with a higher cleaning fee (watch). The commissioner said the taxi industry had asked for the change and the department was presenting it on the industry's behalf (watch). An assistant commissioner explained the basis for the $5 fuel threshold (watch).

Members' questions:

Ald. Bill Conway (34th) asked how the new rates compare with Uber's (watch) and said taxi fares had fallen behind rideshare prices and that he supported the increase (watch).
Reilly asked whether inspection requirements would change and how many investigators enforce taxi rules citywide (watch).
Ald. David Moore (17th) said taxis remain important for people with disabilities and seniors (watch).

What's next

The surcharge stays on until gas falls below $5 a gallon long enough for BACP to end it. BACP's 2027 budget hearing before the Council's Budget Committee is Nov. 4, where members can ask how the department enforces the rule and how many public vehicle investigators it has.

Sources: SO2025-0019931: taxi fare and equipment ordinance (roll call); O2022-2373: taxicab fuel surcharges.